LEGAL SERVICES COMMISSIONER ANNUAL REPORT 2012

13 LeasesFinance leasesThe LSC leases motor vehicles with a carrying amount of $44,123 (2011: $81,347) under finance leases expiring within 4 to 16months. Under the terms of the leases, the LSC is not entitled to acquire the leased assets for a discount of the agreed fairvalue on expiry of the leases.Commitments in relation to finance leases are payable as follows:2012 2011$ $Within one year 29,602 41,535Later than one year but not later than five years 16,630 46,233Minimum lease payments 46,232 87,768Less: future finance charges (2,109) (6,421)Recognised as a liability 44,123 81,347Total lease liabilities 44,123 81,347Representing lease liabilities:Current (note 10) 27,816 37,223Non-current (note 10) 16,307 44,124The present value of finance lease liabilities is as follows:44,123 81,347Within one year 27,816 37,223Later than one year but not later than five years 16,307 44,124Minimum lease payments 44,123 81,34714 Contingent assets and contingent liabilitiesThere were no contingent assets or contingent liabilities at balance date (2011: nil).15 Financial instruments(a) Financial risk management objectives and policiesThe LSC’s principal financial instruments comprise of:• cash assets;• loan to the LSB;• receivables (excluding statutory receivables);• payables (excluding statutory payables); and• finance lease payables.Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basisof measurement, and the basis on which income and expenses are recognised, with respect to each class offinancial asset, financial liability and equity instrument above are disclosed in Note 1 to the financial statements.The main purpose in holding financial instruments is to prudentially manage the LSC’s financial risks within the LSC’s policyparameters.The LSC’s main financial risks include credit risk, liquidity risk and interest rate risk. The LSC manages these financial risksin accordance with its financial risk management policy.The LSC uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility forthe identification and management of financial risks rests with the LSC and is monitored by the Audit Committee of the LSC.72 Legal Services COMMISSIONER Annual Report 2012